Amending a facility agreement

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Practice notes

Amending a facility agreement

Published by a ��˾��ҹ�� Banking & Finance expert

Practice notes

This Practice Note discusses the key issues involved in amending an existing facility agreement. It discusses:

•
common reasons for amending a facility agreement
•
key considerations when amending a facility agreement on a bilateral or syndicated transaction
•
issues to consider where there are guarantees or security
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how to document an amendment, including when to use an amendment letter, amendment agreement and amendment and restatement agreement
•
common conditions precedent
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issues relating to fees and expenses

This Practice Note does not deal with one-off waivers and consents. For information on waivers and consents, see Practice Note: Waiver and consent requests.

For information on amending security documents, see Practice Note: Amending security documents.

For general contract law guidance relating to amendment a contract, see Practice Note: Contract variation.

Common reasons for amending a facility agreement

After a facility agreement has been signed and funding has occurred, the circumstances of the borrower may change and trigger a request for an amendment to the terms of the facility agreement. For example:

•
the borrower may request

Jurisdiction(s):

United Kingdom

Key definition:

Recommendations definition

What does Recommendations mean?

Article 288 TFEU on legal acts, allows EU institutions to adopt recommendations. Recommendations are non-binding instruments which do not have any legal force but are merely persuasive. They simply allow the EU institutions to make their views known and to suggest a line of action without imposing any legal obligation on those to whom they are addressed. However, the Court of Justice has been known to invoke Recommendations to interpret EU law.

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